Guests are seen in the J hotel located in the Shanghai Tower, in Shanghai on June 23, 2021.
Hector Retamal | afp | beautiful pictures
China, with the world’s second-largest economy and second-highest population, will again see the largest exodus of millionaires this year, according to a new study.
According to the report of the investment settlement consulting company Henley & PartnersChina is expected to lose the largest number of dollar millionaires this year to migration, when compared to any other country.
Data from the company shows that 10,800 high-income individuals have emigrated from China in 2022, and another 13,500 are expected to leave this year.
This is not an issue that started with the coronavirus pandemic and has been going on for the past 10 years. Andrew Amoils, head of research at global wealth intelligence firm New World Wealth, which helped create the report, said China has seen the largest departures of millionaires each year. over the past decade, slowing overall wealth growth in the country. declare.
“Recent capital outflows may be more damaging than usual. China’s economy grew strongly from 2000 to 2017, but the growth of wealth and millionaires in the country since then. negligible (in US dollars).”
Other big losers
Coming in second after China, Henley & Partners forecasts India will lose 6,500 net millionaires this year, a net 1,000 less than the number of millionaires leaving the country in 2022.
Sunita Singh-Dalal, partner of private wealth, and said: “The tax prohibition law along with the complicated, complex rules regarding offshore remittances can lead to misinterpretations and abuses, just to name a few. several issues have triggered the trend of investment migration from India”. family office at the law firm Hourani, in the same report.
However, Amoils stressed that these outflows are not a concern because “India creates far more new millionaires than migrants lose.”
Other Asian countries are also expected to see millionaires leave their countries.
Hong Kong is expected to lose 1,000 net millionaires this year, and South Korea and Japan could lose 800 and 300 millionaires, respectively. Reports show Hong Kong residents leaving the city in droves last year — due to Covid-19 restrictions and what they see as an erosion of democratic norms.
Despite political unrest and economic turmoil from Moscow’s war with Ukraine, Russia is expected to lose just 3,000 net millionaires this year, down sharply from 8,500 in 2022.
Russia takes fourth place in Henley & Partners’ ranking, behind the UK, which could lose 3,200 net millionaires this year, double the figure it lost the previous year.
“Brexit has made the UK less hospitable and welcoming to high-income individuals. It is now harder for them to move between the UK and EU countries,” said Trevor Williams, visiting professor at University of Derby and former chief economist at Lloyds Bank of Commerce said in the report.
“Evidence shows that the UK’s share of investment in Europe has declined since it left the EU, with Germany and France benefiting.”
Keep an eye on these countries
Australia could overtake the United Arab Emirates this year to welcome the highest number of net millionaires this year. Australia is expected to see a net outflow of 5,200 millionaires, while the UAE is second with 4,500. Singapore comes in third and could see 3,200 millionaires build city-state homes.
According to the study, Western countries in general remain an attractive destination for millionaires, with the US (2,100), Switzerland (1,800) and Canada (1,600) all making the top 10.
Juerg Steffen, CEO of Henley & Partners, said: “The number of millionaires who emigrate has grown steadily over the past decade, with global figures for 2023 and 2024 projected at 122,000 respectively. and 128,000”.
